Measurement of cost of fixed assets

As per para 16(b) of Exposure Draft 10 - Property Plant and Equipment, directly attributable costs means any cost incurred in bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

As per para 17, directly attributable cost could also include employees cost arising directly from the construction or acquisition of property plant and equipment.

Therefore salaries paid to those employees who are directly involved in construction of the factory building can be capitalised. For eg: salary of civil engineer who has been posted onsite for overview of the work completion can be capitalised.